2024 Retirement Plan and HSA Cost of Living Adjustments

By Brett Sinsabaugh, CPA, CCA, Partner

2024 Retirement Plan and HSA Cost of Living Adjustments

IRS announces dollar limitations on pension plans and other retirement-related items

The Internal Revenue Service (IRS) announced cost of living adjustments to contribution limits for individual pension plans and other retirement-related items (Notice 2023-75). These limits become effective January 1, 2024.

The IRS raised the annual limits of Health Savings Accounts (HSAs) for individuals and families by more than seven percent in May 2023. This was the largest increase in the past few years.

A summary of the changes for qualified retirement plans and HSA plans is included below.

Highlights of retirement adjustments for 2024 vs 2023

Pension, HSA, and Other Retirement Related Limits

Employee Elective Deferral Limits - 401(k), 403(b) and 457$23,000$22,500
Contribution Limits - IRAs$7,000$6,500
Defined Contribution Maximum$69,000$66,000
Annual Compensation Maximum$345,000$330,000
Highly Compensated Employee$155,000$150,000
Catch-Up Contributions Limit - 401(k), 403(b) and 457$7,500$7,500
Catch-Up Contributions Limit - IRAs$1,000$1,000
Key Employee$220,000$215,000
Defined Benefit Maximum$275,000$265,000
Health Savings Accounts (HSA):
Catch-up Contribution (age 55 and Older)$1,000$1,000

Employers and employees should review these limit changes for planning purposes. Employers should be proactive in preparing for these limit changes by talking with plan recordkeepers or third-party administrators, etc. Please be mindful of limitations and timing differences impacting fiscal-year vs. calendar-year plans.

A detailed description of limits and thresholds can be found on the IRS website.

Keiter is focused on keeping you updated on new and changing regulations that may impact you and your business. Questions on this topic? Contact your Keiter Opportunity Advisor | Call: 804.747.0000

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About the Author

Brett Sinsabaugh

Brett Sinsabaugh, CPA, CCA, Partner

Brett’s client focus is primarily in the real estate and construction industry. He also provides financial statement audit, assurance, and employee benefit plan audit services to privately-held businesses in the manufacturing, retail and distribution, and technology industries, as well as membership organizations and trade associations. Brett is a member of the Firm’s Employee Benefit Plan audit team and Real Estate and Construction industry team.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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